DATA CENTRE BUSINESS OPPORTUNITY
ForIndia.Market Research Team
ABout forIndia.market : ## SLIDE 1: ForIndia.Market Platform Overview *Unlock India's $4.2 Trillion Economic Opportunity* *Your Strategic Gateway to India's Business Landscape* The India Paradox India represents one of the world's most compelling investment opportunities—with 7.4% GDP growth (fastest globally), $81B in annual FDI inflows, and a cumulative $1 trillion in FDI since 2000. Yet navigating India's complexity remains a formidable challenge for global enterprises seeking market entry, partnerships, and capital deployment. The world's smartest money—from Singapore ($24.3B pipeline) to Japan ($65B commitment)—is already flowing to India. *The critical question: Will your investment capital be part of this growth story before your competitors?* The ForIndia.Market Solution *Bridging the Gap Between Global Ambition and Indian Opportunity* ForIndia.Market is your compass for India's $200 billion+ sectoral goldmines. We transform regulatory complexity, incomplete market knowledge, and partnership uncertainty into confident, actionable business strategy. What We Deliver *Two-Way Business Discovery* - Connect with vetted Indian partners (distributors, manufacturers, technology collaborators, JV prospects) - Discover foreign investors aligned with your sector and growth stage - Unlock visibility across India's 28 states and 140+ sub-sectors *Policy Intelligence & Incentive Access* - Navigate India's ₹1.97 lakh crore ($26B) PLI incentives across 14 key sectors - Unlock state subsidies up to 35%—most businesses don't know they qualify - Track policy changes weekly; decode regulatory frameworks across central, state, and local levels 
*Regulatory Navigation & Compliance*
- Streamline India's complex multi-tier regulatory environment
- Gain clarity on state-level incentive schemes and sector-specific requirements
- Accelerate market entry by 40-50% with strategic local expertise

*Market Entry & Partnership Development*
- Curated market research tailored to your sector and investment thesis
- Verified partner matching for strategic collaboration
- End-to-end business development support for confident execution

*Sector-Specific Dashboards & Actionable Intelligence*
- Real-time policy tracking across priority sectors
- Market sizing, opportunity identification, and competitive landscape analysis
- Event promotion and participation in India's high-impact business missions

Why This Matters Now
Global investors face analysis paralysis—India generates overwhelming data with new policies weekly and state variations creating friction in decision-making. What takes most enterprises months to decode, *we make simple, clear, and ready to implement*.

Take Action
- *List Your Company* — Gain visibility to high-potential Indian partners (5-minute setup)
- *Get Premium Membership* — Unlock exclusive sector insights and priority partner matching
- *Subscribe to Updates* — Receive curated policy updates and market opportunities
Market Opportunity Overview
The data centre business in India and Southeast Asia represents a combined USD 22-54 billion market opportunity by 2030, with both regions experiencing unprecedented investment from hyperscalers including Google, AWS, Microsoft, and TikTok.
Key Statistics:
$8.01B
India Market Size (2024)
$24.78B
Projected 2033
$13.71B
Southeast Asia Market Size (2024)
$30.47B
Projected 2030
India Operational Capacity
  • March 2025: 1.3 GW (1,255-1,600 MW)
  • Growth Rate: 13.37-19% CAGR
  • High-growth AI segments: 38% YoY
  • Projected 2027: 1.8-2.1 GW
Southeast Asia Growth
  • Growth Rate: 14.24% CAGR
  • Projected Capacity 2030: 5.2-6.5 GW
  • Market tripling from current levels
Investment Climate
Two major regulatory developments are accelerating investment:
India
Draft National Data Centre Policy 2025 under fast-track review proposing up to 20-year tax exemptions
Southeast Asia
Thailand BOI approvals (37 projects worth THB 98.6 billion), Vietnam liberalization (100% foreign ownership since July 2024), Indonesia Omnibus Law (unrestricted foreign ownership)
WHY NOW?
Three Converging Factors Creating Opportunity
01
AI and Cloud Demand Explosion
Data centre players investing INR 2.0-2.3 lakh crore (USD 24-28 billion) in next 7-10 years
AI workloads requiring 3-5x more computing capacity than traditional cloud
ICRA projects data centre sector will add 121+ colocation facilities by 2025
01
Government Policy Support
India: Infrastructure Status (5 MW+) provides industrial power tariffs (INR 4-6/kWh vs. INR 8-10 commercial)
India: Potential 20-year tax exemptions under draft 2025 policy
Thailand: 8-year corporate tax exemption + import duty exemption + foreign land ownership
Vietnam: AI data centres classified as specially incentivized industry with direct government funding
Indonesia: Tax holidays 5-20 years based on investment size; 100% foreign ownership
01
Hyperscaler Investments Validating Demand
  • Google: USD 1 billion commitment to Thailand
  • AWS: Major operations in Thailand, Singapore, India
  • TikTok: USD 126.79 billion investment approved in Thailand (3 locations)
  • Asia's First Quantum AI Data Centre: USD 400 million investment to Batam, Indonesia
PART 3: MARKET COMPARISON FRAMEWORK
Quick Market Position Assessment
Sources: Market data consolidated from Mordor Intelligence, CBRE, Cushman & Wakefield, Research and Markets, Krungsri, and multiple industry reports
INVESTMENT PROFILES & RECOMMENDATIONS
Decision Matrix: Where Should You Invest?
The following sections provide detailed recommendations for six distinct investor profiles, each with specific capital requirements, risk tolerance, and strategic objectives.
PROFILE A: Large Hyperscale Operators
100+ MW, USD 500M+ Capital
Malaysia (Johor Bahru)
Why Malaysia?
Proximity to Singapore (10-15 ms latency), mature ecosystem, established supply chains
Investment Required
USD 8.8M per MW
Power Cost
USD 0.08/kWh
Incentives
  • Malaysia Digital Status (tax exemptions)
  • DESAC scheme (21 approved projects, RM 113.8 billion investment)
Market Status
Johor vacancy 1.1% (near capacity); Klang Valley remains largest hub
Payback Period: 7-9 years
Sources: CBRE, KWM, Baker McKenzie, Cushman & Wakefield
Indonesia (Jakarta)
Why Jakarta?
Largest Indonesian market (57.4% share), 200 MW capacity, established hyperscalers
Investment Required
USD 7.7M per MW
Power Cost
USD 0.11/kWh (higher than Batam)
Incentives
  • Government infrastructure support
  • Foreign ownership allowed
Payback Period
6-8 years
Source: Mordor Intelligence, Cushman & Wakefield
PROFILE B: Mid-Scale Colocation Operators
20-50 MW, USD 100-200M Capital
RECOMMENDATION: India (Hyderabad or Bangalore)
Lowest Power Costs
USD 0.067/kWh
40% cheaper than APAC average
Fastest Growth
13.37-19% CAGR
Strong government support
Investment Required
USD 4-5M per MW
Best capex efficiency
Construction Timeline
18-30 months to operational
Payback Period
5-7 years
State-Specific Advantages:
Telangana (Hyderabad)
  • 50-acre dedicated data centre park
  • Single-window clearance in 15 days
  • 25% capital subsidy
  • 50% SGST rebate 3 years
Karnataka (Bangalore)
  • Capital and interest subsidies
  • Electricity duty exemption 5 years
Maharashtra (Mumbai)
  • 100% stamp duty exemption
  • 50% electricity duty waiver 10 years
  • Capital subsidy 20%
Sources: Economic Times, Profile ITS, Blackridge Research, CBRE
RECOMMENDATION: Vietnam (Ho Chi Minh City)
Why Vietnam?
Lowest construction costs (USD 6.4M/MW), lowest power (USD 0.06/kWh), AI sector incentives
Foreign Ownership
100% allowed, unrestricted (since July 1, 2024)
Government Support
AI data centres specially incentivized with direct funding
Construction Timeline
20-24 months (fastest regulatory approvals)
Payback Period
6-9 years with growth upside
Sources: Tilleke & Gibbins, ASEAN Briefing, Cushman & Wakefield
PROFILE C: Regional Hub & Redundancy Strategy
PRIMARY HUB: Indonesia (Batam)
Strategic Location
25 ms from Singapore, 12+ submarine cables, 22.55% CAGR growth
Investment Required
USD 6.8-7.7M per MW
Power Cost
USD 0.06/kWh (lowest ASEAN)
SEZ Benefits
  • Tax incentives
  • Renewable energy support
  • Foreign ownership allowed
Connectivity Advantage
Nongsa Digital Park, 8 submarine cables to Singapore, strategic hub positioning
Emerging Project
Asia's first Quantum AI data centre (USD 400 million) coming to Batam
Sources: Asianinsiders, Isquare Intelligence, Depawareai
SECONDARY COVERAGE: Thailand (Bangkok)
Why Thailand?
Central ASEAN positioning, large domestic market, EEC zone benefits
Investment Required
THB 5 billion (~USD 143 million) minimum for BOI incentives
Tax Benefits
  • 8-year corporate tax exemption
  • Import duty exemption
  • Foreign land ownership
Market Dynamics
37 approved BOI projects worth THB 98.6 billion; 35% FDI growth
Sources: Tilleke & Gibbins, Lex Nova Partners
PROFILE D: Risk-Averse Conservative Investors
PRIMARY: Malaysia (Johor-Singapore Corridor)
Why Malaysia?
Mature market, proven demand, regulatory certainty, established supply chains
Market Status
Established ecosystem with Equinix, NTT, STT GDC operations
Limitations
Johor at 1.1% vacancy (near saturation); limited new capacity availability
Alternative Approach
Consider acquisition or partnership models rather than greenfield
SECONDARY: India (Tamil Nadu or Telangana)
Why India?
Clear state policies, established regulatory frameworks, proven government support
Advantages
  • Single-window clearance systems
  • Published approval timelines
Tamil Nadu Benefits
  • 100% electricity tax exemption (5 years)
  • 25% equipment subsidy
Sources: Profile ITS, Deloitte
PROFILE E: Cost-Optimization & Rapid Deployment Focus
BEST OPTION: Vietnam (Ho Chi Minh City or Hanoi)
$6.4M
Construction Cost per MW
Lowest in region
$0.06
Power Cost per kWh
Lowest in ASEAN
20-24
Months to Operations
Fastest approvals
100%
Foreign Ownership
Unrestricted since July 2024
AI Data Centre Incentives
Specially classified industry with government funding support
Market Projection
USD 1.26 billion by 2030; highest CAGR (25%)
Sources: Tilleke & Gibbins, ASEAN Briefing, Cushman & Wakefield
PROFILE F: Growth-Seeking Portfolio Investors
RECOMMENDED STRATEGY: Indonesia + Vietnam Combination
Indonesia (Batam)
22.55% CAGR, regional hub positioning
Vietnam
25% CAGR, cost leadership
Combined Growth
22-25% CAGR (2.2x faster than India percentage-wise)
Diversification Benefits
  • Geographic and market segment spread
  • Timeline: 3-year phased rollout across facilities
  • Expected Blended Payback: 6-8 years
SECONDARY DIVERSIFICATION: India (Tier-1 cities)
Rationale
Stable returns, predictable market, policy support
Growth Rate
13.37-19% CAGR (lower growth but larger absolute market)
Risk Balance
Stable India + High-growth Indonesia/Vietnam = Balanced portfolio
Sources: Mordor Intelligence, ASEAN Briefing, Cushman & Wakefield
PART 5: COMPARATIVE ANALYSIS ACROSS KEY DIMENSIONS
Power Tariff Comparison (Cost Leadership Indicator)

Insight: India's 6.7¢/kWh is 40% cheaper than APAC average (11.48¢/kWh), providing significant operational cost advantage over 20-25 year facility lifespan
Sources: Economic Times, Blackridge Research, Multiple tariff sources
Construction Cost Comparison (Capex Efficiency)
Key Finding: India offers best capex efficiency; Vietnam offers best regional capex rate
Cost Breakdown for 1 MW in India:
Sources: Blackridge Research, Cushman & Wakefield, CBRE
Regulatory Timeline Comparison (Speed to Market)

Critical Insight: Vietnam fastest regulatory approvals; India grid connection is longest lead item
Sources: Blackridge Research, Tilleke & Gibbins, Profile ITS
Connectivity & Latency Comparison (Performance Metric)

Critical Finding for Client: Batam/Malaysia offer 25-40 ms latency advantage over India for cross-border applications
New Infrastructure: Patara-2 submarine cable (1,200 km) recently completed, connecting North Maluku to Manokwari/Supiori
Sources: Ookla, Telecom Review, CBRE, Baker McKenzie
REGULATORY LANDSCAPE & INCENTIVES
India's National Policy Framework
Draft National Data Centre Policy 2025 (Under Fast-Track Review)
Status
MeitY restarted consultations in August 2025; expected implementation 2025-26
Key Proposals:
Tax Incentives
Up to 20-year tax exemptions (significant improvement from current structure)
Infrastructure Status
Already approved for facilities 5 MW+ (industrial power tariffs, accelerated depreciation)
Focus Area
Regulatory ease rather than direct financial subsidies
DCEZ
Data Centre Economic Zones with pre-approved clearances, assured power, fibre connectivity
Implementation Coordinated With:
Ministries of Power and Telecom (addressing land, energy, cable-laying issues)
Current Regulatory Bodies:
  • TRAI (Telecom Regulatory Authority): Certifications, building standards, security frameworks
  • BIS (Bureau of Indian Standards): TIA-942 building construction standards
  • STQC Directorate (MeitY): Security certification framework
  • Uptime Institute: Tier certification (I-IV) recognized in India
  • CERT-In: Empaneled auditors for compliance audits
Data Protection Requirements:
Personal Data Protection Bill 2023
Data localization mandatory for critical data
Security Standards
ISO 27001, SOC 2 Type II mandatory
Uptime Requirement: 99.982% for financial sector clients
Sources: MeitY, TRAI, Economic Times, Profile ITS
State-Level Incentives in India
TELANGANA (HYDERABAD) - STRONGEST INCENTIVES
Approval Timeline
Single-window clearance in 15 days
Capital Subsidy
25% of investment
Power Benefits
50% SGST rebate for 3 years + exemption from statutory power cuts
Infrastructure
Dedicated 50-acre Data Centre Park
Stamp Duty
Full reimbursement
Best For: Mid-to-large scale operators seeking regulatory certainty
Source: MeitY State-wise Policies
KARNATAKA (BANGALORE)
  • Capital Subsidy: Available (percentage negotiable)
  • Interest Subsidy: Available for eligible projects
  • Electricity Duty: Exemption for 5 years
Best For: Established operators with proven track record
Source: MeitY State-wise Policies
MAHARASHTRA (MUMBAI/PUNE)
  • Stamp Duty: 100% exemption
  • Electricity Duty: 50% waiver for 10 years
  • Capital Subsidy: 20% up to INR 10 crores
  • Continuous Water Supply: Guaranteed
Best For: Large-scale hyperscale operations
Source: MeitY State-wise Policies
TAMIL NADU (CHENNAI)
Land Rate
50% concessional in SIPCOT parks
Electricity Tax
100% exemption for 5 years
Equipment Subsidy
25% on equipment
Best For: Cost-optimized greenfield projects
Source: MeitY State-wise Policies
HARYANA
Electricity Duty
100% rebate
GST
25% state GST rebate
Best For: NCR region projects
Source: Economic Times
Southeast Asia Policy Frameworks
THAILAND - Board of Investment (BOI) Incentives
Approval Status: 37 approved projects worth THB 98.6 billion (USD 2.8 billion); 35% FDI growth in 2023
BOI Package (8-year tax exemption structure):
Corporate Income Tax
8-year exemption (compared to 20-30% standard rate)
Import Duty
Full exemption on machinery and equipment
Foreign Land Ownership
Unique advantage - allowed in data centre sector
Work Permit Facilitation
Streamlined for expatriate specialists
Post-Exemption: 50% tax reduction for 5 additional years
Minimum Investment Requirement: THB 5 billion (~USD 143 million)
Additional Requirements:
  • Minimum 2 data centre facilities with ISO/IEC 27001 certification
  • At least 2 MW electrical capacity per facility
  • Thai partner required for telecom services (governance requirement)
Geographic Zones:
  • Bangkok Metropolitan: Primary hub (highest concentration)
  • Eastern Economic Corridor (EEC): Chonburi & Rayong (enhanced infrastructure benefits)
Recent Investments:
TikTok (THB 126.79 billion), Siam AI (THB 3.25 billion)
Direct US Connection: Asia-America Gateway (AAG) submarine cable landing in Si Racha
Sources: Tilleke & Gibbins, Lex Nova Partners, Krungsri
VIETNAM - Market Liberalization & AI Incentives
Policy Status: 100% foreign ownership unrestricted since July 1, 2024
Incentive Structure:
Foreign Ownership
100% allowed, unrestricted (major liberalization)
AI Data Centres
Specially classified industry with preferential treatment
Tax Benefits
10% corporate tax for 15 years in designated tech parks
Government Funding
Direct support from local development budgets for facility construction, technical infrastructure, equipment
Customs Duty: Preferences for AI data centre construction projects
Regulatory Framework: Data centre services classified as value-added telecom services under 2023 Telecom Law
Investment Requirements:
  • Investment Registration Certificate (IRC) needed
  • Minimum USD 10 million for infrastructure projects
  • Environmental Impact Assessment mandatory
Market Opportunity:
$1.26B
Projected Market Size 2030
25%
CAGR
Highest in region
Primary Hubs: Ho Chi Minh City, Hanoi, Da Nang
No Specific Minimum Capacity: More flexible than other countries
Sources: Tilleke & Gibbins, ASEAN Briefing, Vietnam MPI
INDONESIA - Omnibus Law & SEZ Benefits
Policy Status: Omnibus Law 2023 allows 100% foreign ownership (major change)
Investment Framework:
Sector Licensing:
PBI License: Required from Bank Indonesia for financial data handling
Geographic Opportunities:
Jakarta (Cibitung)
57.4% market share, 200 MW capacity, established
Batam (Nongsa Digital Park)
22.55% CAGR, strategic hub status, 12+ submarine cables, 25 ms to Singapore
Surabaya
Emerging secondary market
New Infrastructure: Patara-2 submarine cable (1,200 km) enhances North Maluku connectivity
Growth Catalysts:
  • Nusantara Capital City: USD 32 billion smart city project driving data centre demand
  • Quantum AI Data Centre: USD 400 million investment to Batam (Tunas Prima Industrial Estate with solar power)
Sources: Asianinsiders, Mordor Intelligence, NEC, Opengovasia
MALAYSIA - Digital Ecosystem Approach
Investment Framework:
Malaysia Digital Status (MDS)
Tax exemptions, foreign equity exemptions, foreign knowledge worker rights
DESAC Scheme
Tax allowances on capital expenditures
Track Record: 21 projects approved since 2021; RM 113.8 billion investment (90% foreign)
Johor-Singapore SEZ Benefits
  • Special Corporate Tax Rates: Customized incentives
  • Cross-Border Processes: Streamlined approvals
Market Status (2025):
  • Johor Vacancy Rate: 1.1% (near capacity, limited new supply)
  • Klang Valley: Remains largest existing hub
  • New Data Centre Framework: Launching October 2025 with MIDA as principal approval agency
  • Sustainability Focus: New environmental compliance standards
  • Capacity Added (H1 2024): 1.3 GW (fastest APAC growth in absolute terms)
Sources: Baker McKenzie, CBRE, MIDA
FINANCIAL PROJECTIONS & RISK ASSESSMENT
Revenue & Return Models
India Typical Financial Model
Base Case: INR 138 Crore Investment (3-5 MW Facility)
₹138Cr
Initial Investment
₹9,500
Monthly Revenue per kW
6%
Revenue Growth Rate
Annually
40%+
Operating Margin
EBITDA Margin
20-22%
Payback Period
6 years
Annual Revenue at Full Utilization
INR 50-65 crores
Overall Market Metrics:
  • Top 5 Operators (75-80% market share): Revenue growth 18-20% YoY (FY2026)
  • Operating Margins: 40-41% (industry healthy range)
  • EBITDA Margins: 20-22%
  • Colocation Contribution: 80-85% of revenues (hyperscaler-backed capacity)
Market Revenue Projections:
CAGR: 13.37-19% (varying by segment)
Sources: Equity Edge Research, Yahoo Finance, ICRA
Southeast Asia Revenue Metrics
Regional Market Projections:
CAGR: 14.24%
By 2030 Projected Capacity: 5.2-6.5 GW (tripling from current)
Market Segment Breakdown:
Sources: Mordor Intelligence, Isquare Intelligence
Risk Assessment & Mitigation Strategies
COMPETITIVE RISK (Medium-High)
Risk Description:
5→18
India Operators
2019 to 2025
121+
Colocation Facilities
Expected by 2025 in India
  • Increased pricing pressure on colocation rental rates
  • ICRA warns: Payback periods extending beyond 6-9 years for new entrants
Mitigation Strategies:
Niche Positioning
Focus on specialized segments (AI, financial services, gaming)
Long-term Hyperscaler Contracts
Lock in demand with 5-10 year agreements
Premium Service Offerings
Differentiate through Tier IV certification, advanced cooling, lower PUE
Regional Hub Strategy
Position as connectivity advantage rather than pure capacity play
Sources: ICRA, Equity Edge Research
REGULATORY RISK (Medium)
Risk Description:
  • India: National Data Centre Policy pending since 2020 (now under fast-track review)
  • Vietnam: Regulations rapidly evolving post-July 2024 liberalization
  • Indonesia: Implementation of Omnibus Law improvements still in progress
  • Thailand: Political stability concerns (though BOI framework stable)
Mitigation Strategies:
Early Government Engagement
Establish relationships with relevant ministries (MeitY, BOI, BKPM)
Legal Advisory
Hire experienced data centre regulatory counsel in each jurisdiction
Phased Investment
Avoid all-in commitment; phase deployment across 2-3 years
Policy Scenario Planning
Model business cases under multiple policy outcomes
Sources: MeitY, Tilleke & Gibbins, Profile ITS
POWER SUPPLY RISK (Medium)
Risk Description:
  • India: Electricity board approval timelines average 18-24 months for >10 MW loads
  • Variable Tariffs: Electricity duty and tariffs vary by state; subject to future changes
  • Infrastructure Reliability: Power supply consistency varies outside major urban hubs
  • Indonesia (North Maluku): Power constraints reliant on regional PLN infrastructure
Mitigation Strategies:
Long-Term Power Agreements
Negotiate 15-20 year fixed-rate contracts with state boards
Backup Renewable Energy
Invest in 40-50% renewable capacity (solar/wind) with battery storage
Avoid Remote Areas
Select locations with proven grid reliability (major metro areas)
Multiple Power Sources
Dual grid connections where available
Sources: Blackridge Research, Profile ITS, Ookla
CONNECTIVITY & INFRASTRUCTURE RISK (Low-Medium)
Risk Description:
  • Submarine Cable Outages: Rare but experienced (Papua, Indonesia 2024 incident)
  • Developing Regions: Limited submarine cable landing in emerging markets (Vietnam, North Maluku)
  • Latency Variability: Performance varies based on cable congestion
Mitigation Strategies:
Multi-Cable Approach
Design facility with multiple submarine cable connections
Diverse Landing Points
Avoid single point of failure in cable infrastructure
Geographic Hub Selection
Prioritize locations with 8+ submarine cables (Batam, Malaysia)
Avoid North Maluku as Primary
Keep as secondary/backup only; infrastructure still developing
Sources: DCD, Ookla, Telecom Review
CURRENCY & FX RISK (Medium)
Risk Description:
  • All Southeast Asia currencies subject to USD fluctuation
  • Revenue typically USD-denominated; costs in local currency
  • Project financing may be multi-currency
Mitigation Strategies:
USD-Denominated Contracts
Negotiate all major customer contracts in USD
Local Currency Pricing for OpEx
Match local costs with local revenue streams
Hedging Programs
Utilize currency hedging for 50%+ of USD receivables
Natural Hedging
Use local currency debt to offset local currency operational costs
Sources: Blackridge Research